Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 208.240

    Division   207 also applies to a * distribution * franked with an exempting credit made by a * former exempting entity as if it were a * franked distribution if:

  (a)   a * corporate tax entity other than a former exempting entity became an * exempting entity; and

  (b)   immediately before the entity became an exempting entity all the accountable membership interests and accountable partial interests were beneficially owned (whether directly or indirectly) by individuals who were Australian residents; and

  (c)   the entity became an exempting entity because some or all of the individuals ceased to be Australian residents; and

  (d)   the entity becomes a former exempting entity because all of the individuals are or have become Australian residents; and

  (e)   an amount attributable to a distribution * franked with an exempting credit made by the entity is included in the assessable income of such an individual; and

  (f)   all the accountable membership interests or accountable partial interests in the entity were, throughout the period beginning when the entity became an exempting entity and ending when the amount was received by the individual mentioned in paragraph   (e), beneficially owned (directly or indirectly) by that individual; and

  (g)   the individual is an eligible continuing substantial member in relation to the distribution.

Table of Subdivisions

  Guide to Division   210

210 - A   Franking a distribution with a venture capital credit

210 - B   Participating PDFs

210 - C   Distributions that are frankable with a venture capital credit

210 - D   Amount of the venture capital credit on a distribution

210 - E   Distribution statements

210 - F   Rules affecting the allocation of venture capital credits

210 - G   Venture capital sub - account

210 - H   Effect of receiving a distribution franked with a venture capital credit

Table of sections

210 - 1   Purpose of venture capital franking

210 - 5   How is this achieved?

210 - 10   What is a venture capital credit?

210 - 15   What does the PDF have to do to distribute the credits?

210 - 20   Limits on venture capital franking